Accouting scheme at housing construction cooperatives: An application

Housing construction cooperatives are founded to meet it members housing needs in most affordable conditions. In these cooperatives the function of accounting is very important, however, there is no consistency neither in the applications nor in the literature. The research objective of this study is to identify deficiencies in accounting for housing construction cooperatives, and propose solutions on this deficiencies. In this regard, it is important to identify whether housing constructions done by these cooperatives should be treated as a service or manufacturing activity. To understand the current situation in accounting applications, common mistakes and the reason for different applications we surveyed the literature. Furthermore, we did interviews with some accountants who make business with housing construction cooperatives. As a result, we found out that the most important factors that affect the cost of houses in housing construction cooperatives are the type of construction and if the cooperative has tax exemption or not.